Climate Change Data

Environmental Metrics

ESG Focus Areas

• Product Innovation
• Customer Growth
• Ethical Conduct
• Local Talent
• Procurement Practices
• Waste Management
• Energy Management
• Water Management
• Workforce Diversity
• Training and Development
• Safety and Healthy Working Environment
• Our Response to COVID-19
• Local Community

Environmental Achievements

• Reduced energy consumption by 64,111 kWh per RM million revenue compared to 65,727 kWh per RM million revenue in FY2020. Installed a solar photovoltaic (PV) system.
• Reduced water consumption to 410.76 average m³ per RM million revenue compared to 441.07 average m³ per RM million revenue in FY2020.
• Initiatives to promote 3R (Reduce, Reuse, Recycle) among employees, including recycling bins and paperless initiatives.

Social Achievements

• Launched a Clinic Assistant Program (CAP) to bridge the unmet needs of customers and elevate the Malaysian workforce.
• 99% of employees fully vaccinated against COVID-19.
• Annual contributions to schools and support for orphanages, homes for the elderly, disabled, and unprivileged.
• Customer base grew by 16% compared to the previous financial year.

Governance Achievements

• Established a robust risk management and internal control system.
• Formalized Remuneration Policies and Procedures.
• Implemented a Code of Conduct and Ethics, Whistleblowing Policy and Procedures, Anti-Fraud Policy, and Anti-Bribery and Corruption Policy.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic causing supply chain disruptions, decreased sales in international markets, and delays in product approvals.
• Stiff competition from local and international competitors.
• Escalating costs of raw materials, shortage of raw materials, liquidity, increased risk of bad debts, increase in labour costs, and accessibility to skilled personnel.
• Uncertainties and risks associated with geopolitical instability, fluctuations in foreign currency exchange, economic instability, inventory obsolescence, and lockdowns.

Mitigation Strategies

• Undertook operational efficiency initiatives, cost rationalisation measures, and strategic decision-making efforts to optimise manufacturing footprint.
• Facilitated remote working, virtual meetings, compulsory mask usage, social distancing, and other precautionary measures to curb COVID-19 spread.
• Partnered with MITI via PIKAS to increase vaccination uptake.
• Implemented pertinent measures to mitigate financial and operational risks by having effective procedures, prudent financial management, and exercising vigilance on business-relevant changes.
• Established a COVID-19 Response Team to provide a safe working environment and minimise infection risk.
• Constantly reviewing supply chain network and monitoring suppliers’ ability to continue operating and comply with quality standards.
• Implemented pertinent policies and procedures to mitigate regulatory compliance, cyber security, COVID-19 pandemic, and corporate liability on corruption risks.
• Deepening focus on marketing and brand development, pricing strategy, and other relevant strategies to deal with competition.

Supply Chain Management

Supplier Audits: 53 in FY2020, 37 in FY2021

Responsible Procurement

• Rigorous process control to ensure products meet quality standards and regulatory compliance.
• Emphasis on engaging with local suppliers to source materials, equipment, machinery, or services whenever possible.
• Annual evaluation of suppliers’ performance in terms of quality, price, and delivery timeliness.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: MCCG 2017

Certifications: ISO 9001, ISO/IEC 17025, ISO 13485:2016, Halal certifications by JAKIM for 84 products

Sustainable Products & Innovation

• Appeton Multivitamin Pastilles
• Axcel Glimepiride
• Axcel Bromhexine (Children) Syrup
• Arite Beclometasone 50mcg
• Vaxcel Granisetron Injection
• Axcel Atenolol

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Installed a 600 kW solar PV system in the previous financial year.

Social Achievements

• Organised three Clinic Assistant Programs (CAP) sessions with 125 participants.
• Maintained zero fatalities in the Group during the reporting financial year.
• Various CSR activities including sponsorship for Children’s Day, blood donation drives, book prizes, post-graduate research studies, old folks’ homes, B40 families, orphanage homes, and COVID-19 sanitisation volunteers.

Governance Achievements

• Reviewed corporate governance practices to align with the revised Malaysian Code on Corporate Governance 2021 (MCCG 2021).

Climate Goals & Targets

Environmental Challenges

• Global supply chain disruption causing delays and shortages of raw materials.
• Increasing inflationary pressure on raw materials.
• Steep increases in shipping and logistic costs.
• Stiff competition from local and foreign players.
• Potential rise in protectionism from overseas countries.

Mitigation Strategies

• Careful planning and adaptation to raw material bottlenecks and disruptions.
• Implementing pertinent measures to mitigate risks by deploying pragmatic procedures and internal control, prudent financial management and exercising vigilance on the changes relevant to our business.
• Regular engagement with regulatory and government authorities and participation in pharmaceutical related associations.
• Effective compliance management internally by embedding controls and compliance process in the Group via periodic reviews, continuous training and establishing effective compliance management team.
• Focus on marketing and brand development, pricing strategy and other relevant strategies that give us a comparative advantage.

Supply Chain Management

Supplier Audits: Evaluated 29 suppliers (2022); 37 (2021).

Responsible Procurement

• Careful selection of suppliers based on pre-determined criteria (competitive pricing, compliance, terms & conditions, reputation, financial stability, quality, relevant documents).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: MCCG 2021, Bursa Securities' Sustainability Reporting Guide 2nd Edition

Certifications: ISO 9001:2015, ISO/IEC 17025:2017

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 11
• SDG 12
• SDG 13
• SDG 16

The material sustainability matters identified from the materiality assessment are listed in the table above with respect to the identified SDGs.

Sustainable Products & Innovation

• Axcel Prednisolone 5mg
• Vaxcel Methylprednisolone 1g Injection
• Axcel Azithromycin 500mg Tab
• Vaxcel Esomeprazole 40mg

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Installed solar photovoltaic system (827,304 kWh or 827.30 MWh in 2024)
• Decreased water consumption by 9.6% to 69,196 m³ (69.2 ML) in 2024
• Decreased non-hazardous waste by 10% to 49,515 kg (49.5 MT) in 2024
• Decreased hazardous waste by 31% to 56,600 kg (56.6 MT) in 2024

Social Achievements

• Welcomed 123 new hires in 2024
• Average training hours per employee was 29.7 hours in 2024
• Invested RM139,181 in community investment in 2024
• Maintained a balanced proportion of male (50.4%) and female (49.6%) employees

Governance Achievements

• Established Anti-Bribery and Corruption Policy
• Established Whistleblowing Policy
• Established Code of Conduct and Ethics
• Conducted corruption risk assessments and integrated them into the ERM framework

Climate Goals & Targets

Environmental Challenges

• Volatile exchange rates and inflationary pressures
• Drop in sales of supplement products (both export and local market)
• Significant increase in tax expenses (RM11.9 million compared to RM0.8 million in 2023)
• Stiff competition from local and foreign players
• Potential rise in protectionist measures from overseas markets

Mitigation Strategies

• Implementing pragmatic procedures and internal control, prudent financial management and exercising vigilance in decision-making
• Engaging with regulatory and government authorities and participating in pharmaceutical associations
• Implementing a robust compliance management system
• Focusing on quality marketing and brand development, pricing strategy
• Optimizing cost structure by enhancing productivity and continuous cost rationalisation measures

Supply Chain Management

Supplier Audits: 40/year

Responsible Procurement

• Prioritising local suppliers
• Fostering fair and transparent procurement practices
• Establishing stringent procedures and measures for selecting suppliers
• Emphasising alternative sources to secure continuous supply of materials

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Bursa Malaysia Sustainability Reporting Guide (3rd Edition), UN Sustainable Development Goals (SDGs), Malaysian Code on Corporate Governance (MCCG)

Certifications: ISO 9001, ISO 17025

UN Sustainable Development Goals

• SDG 12
• SDG 7
• SDG 13
• SDG 6
• SDG 4
• SDG 5
• SDG 8
• SDG 3
• SDG 16

The material sustainability matters associated with the identified SDGs are outlined in the report.

Awards & Recognition

• Centurion of The Year at The Edge Malaysia Centurion Club Corporate Awards 2023
• Highest Return on Equity (3 consecutive years)
• Highest Growth in Profit After Tax (3 consecutive years)
• Highest Return to Shareholders (3 consecutive years)